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Of Note in this Issue:
Volume 4, Issue #6
April 7, 2015
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Success with Insurance
Tax Deferred Investing
Product and Research Ideas
TREVOR HERE
Bi-Monthly Conference Call Monday, April 13
Our broker dealer conference call is held on the second Monday of every month. Our next call is on Monday, April
13, 11:00 a.m. Central/Noon Eastern.
Conference Call: (712) 432-1212; Meeting ID: 107872578#
Tax Deferred Investing: Post Conference
If you would like a copy of Don Deans’ presentation
from the conference regarding Tax Deferred
Investing, please send me an email at
[email protected]. Thank you again
to Don for making it available to our group
Your Conference Photo!
If you took a professional photo during our
conference, we have the files! They are too large to
email directly, so Marlene Arteta will be sending you a
link to download the file. Since these downloads
expire, please contact her to receive your file
[email protected]
Setting Yourself Up For Success: by Chris Wells, President, Sandlapper Insurance Services
Do you have a plan for each and every appointment you put on your calendar or do you just step out of the car (or
the client walks into your office) and you are just figuring it out on the fly. If you are a golf fan like myself, you
know that the best players in world have a game plan for each and every hole before the round even starts. While
there is no guarantee to the success, having a plan in place does give them the best chance to succeed. Below are 9
tips that will give you the best opportunity to succeed.
Successful Appointment Tips
1) Don’t go too far - Know when to stop your 1st appointment. Remember, the 1st appointment is all about
discovery and continuing to build rapport with your client. No recommendations will be made; however,
areas for concern will be pointed out to address during the 2nd and 3rd appointments.
2) Don’t say too much - Allow the client to do most of the talking, they will tell you what you need to know.
Active listening is critical. Focus on identifying their needs and concerns so you can help address them in
the product solutions and strategies you present later; such as annuities, life insurance, long term care
insurance, etc.
3) Don’t interpret as you go - Gather all the facts before giving any concerns, this allows the client to give
you a complete view and you to prepare your concerns one at a time.
4) Ask open-ended questions - “What do you want to accomplish in today’s meeting?” “How does that
make you feel?” Other questions that help in the fact finding process include probing “Tell me more
about that” or “What else should I know?” or “Can you provide me with an example?”
5) Be the same person - Be the same person in the appointment that you were in the workshop presentation
- A calm, confident, knowledgeable professional who is more than capable of helping them. Think of the
professionals that you immediately feel at ease with their demeanor: the confident doctor or airline pilot.
Remember, someone asking for an appointment has already decided they like you, now you just have to
lead them to becoming a client!
6) Solve problems, don’t sell - Pushing a sale puts you in a position of weakness, that you NEED the client.
Problem Solving helps put you in a position of strength, viewed as the financial professional you are and
that they can benefit from your knowledge and services.
7) Your success is found in your alone time - Do your homework and be prepared. Continue to study and
learn about our industry. Things are constantly changing and you need to stay sharp so we can continue
to help address our client’s concerns.
8) Surrender to process - Many times I’ve seen advisors try to market themselves but not have a true process
behind their efforts. The best advisors will construct a practice that has a refined process. They will also
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have a refined process behind each and every client encounter that they follow as well. By having a
process it allows you to focus on the prospect's needs and minimize confusion on what to do.
9) Stay relaxed - When I role play with some advisors prior to appointments, sometimes their anxiousness is
so palpable, I can feel it through the phone! When delivering information keep the information simple, to
the point, showing how clients will clearly benefit from the solution. At the end of the meeting,
regurgitate the information discussed at the meeting and confirm what the next steps will be with the
client.
Supervision: Compliance Update by Carolyn Jenkins
Don’t assume that any and all non-securities compensation falls under your OBA/DBA. The AWC referenced in
the article below is a good reminder that many of the relationships we engage in over the course of our business
ARE independent of our OBA/DBA, and securities business and as such need to be approved PRIOR to engaging
in such business. Remember, our “regulatory” body is member funded and therefore has no qualms when raising
revenue to play gotcha. Best practices for you whenever adding or expanding the capabilities of your practice is to
just call first and put the onus back to your broker dealer as to whether it is a disclosable OBA or not.
Don't let them “getcha” with a gotcha.
http://www.brokeandbroker.com/2725/oba-finra-awc-/
Investment Programs – “NEW” Research and Marketing Department
As part of our “High Touch” support in 2015, our new Research and Marketing Department provides updates and
other pertinent information provided by the Fund Sponsors and learned from other sources. This on-going research
obtained through due diligence meetings and interviews with portfolio managers and economists will begin to
appear here regularly. Requests for research and review of additional fund groups can be emailed to Liz at
[email protected].
Post-Recession Investors Show Depression-Era
Healthcare
Fears
How many FAs use IBB, iShares NASDAQ
Biotechnology? If you’ve been using it for the past 1
year, 3 years and/or 5 years, good job. However,
going forward I would expect increased volatility, if
not a correction in biotech.
Looking for another way to invest in the Health Care
industry? Check out Highland Long/Short Healthcare
Fund (HHCAX), managed by Highland Capital.
Morningstar categorizes HHCAX as a long/short
equity fund, with a mid-cap growth investment style.
The 5 yr average annualized total return of 11.36%
(as of 4/2/14, at NAV with all dividends and capital
gains reinvested) is in the 9th percentile. It is rated 4
stars by Morningstar.
The attached article from MFS discusses the results
of a 2014 Investor Sentiment Survey. Five key
takeaways:
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Most respondents, in all generations, say
growth is their top priority for retirement
investing.
 Investors’ asset allocations are lower in
stocks and higher in cash than may be
advisable in seeking to maximize growth.
 Most investors do not understand the
potential risk of underinvesting.
 Ge n X/Y investors prioritize growth for
retirement, but also focus far more on
income than expected.
 Baby Boomers have a decided preference for
growth.
What are the implications for advisors? Education is
important so your prospects and clients understand
their own disconnect.
Why Long/Short Healthcare?
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Heath care is one of the largest and fastest
growing components of US GDP
A great way to “play” Obamacare, largest
structural change in 50 years
Opportunity to invest in the Biotechnology
Revolution
Active management is optimal as correlations
decline and dispersion increases
Highland’s strategy seeks to deliver alpha and
attractive absolute returns at low beta
correlation to the S&P 500.
Floating Rate Funds
Concierge Services: FINRA Approved Marketing
Worried about interest rates moving up? Floating rate
funds can help blunt some of the downward pressure
on NAVs as interest rates increase. Highland also has
a fund called Highland Floating Rate Opportunities
Fund, an open-end fund AND a closed-end fund,
NexPoint Credit Strategies Fund (NYSE: NHF.)
Get more information at www.highlandfunds.com or
877-665-1287.
Materials
We are in the process of creating FINRA approved
marketing materials. We now have a prospecting
letter available for use by all SANDLAPPER reps
that has been approved by compliance. This letter can
be customized with your personal contact
information. Please note that all materials, approved
or not, must be submitted to SANDLAPPER
Securities compliance before using it. Please contact
Elizabeth Stevens for a copy of the letter.
As always if you have any comments or questions,
please email [email protected] or
call her at 512-567-5836.
Product Updates:
**To submit products for review complete submission form. Please return completed forms to me at
[email protected]. ***
Sandlapper Student Housing’s DST SL Enclave West in Edwardsville, Illinois has $4,000,000 available with
63.39% LTV and 6.5% year one master lease payment, this property offers investors no closing risk.
Audited financials are now available for Tiburon Saltwater Reclamation Fund I and Tiburon Saltwater
Reclamation Fund II. Please contact Natalyn Klump for information.
TEI Diversified Income & Opportunity Fund II announces new property acquisition of Club Hill Apartments
in Columbus, GA. For more information please see Supplement no. 8 to the PPM published March 3, 2015.GPB
Capital Holdings, LLC as previously announced is anticipated to close to new investors April 30, 2015. However, due to the
limited number of investor slots within the Fund, the actual close date may occur before the anticipated close date. Please
contact your Ascendant Capital representative at 877.410.1250 or [email protected].
Inland’s Colorado Multifamily DST published Supplement No. 4 to the Private Placement Memorandum.
Investors and advisors should retain this document for their records. For more information, please contact Inland
Private Capital Corporation at 888.671.1031
Hamilton Point Investments, LLC
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Fund Liquidity Event: HPI Real Estate Opportunity Fund I, LLC, which was raised and invested in 2010
and 2011, acquiring twelve apartment properties, was fully liquidated at year-end 2014 with all proceeds
returned to investors. Each property was sold at a profit and investor annual returns net of fees averaged
above 14.5%.
 Fund Closing: HPI Real Estate Opportunity Fund III, LLC closed to new investors on December 31,
2014, having been fully subscribed with over $80,000,000 of equity. To date that fund has acquired ten
properties for over $200,000,000 and is under contract to close on its final two investments by mid-April.
 New Fund Offering: HPI Real Estate Opportunity Fund IV, LLC was launched in January 2015. This
fund continues the investment strategy as the firm’s previous investment funds, acquiring high quality
multifamily apartment properties to provide investors with a tax deferred 7% annual distribution, paid
quarterly, and a 14% IRR net to investors over the fund’s five-year hold period. Please contact Kristen
Becher regarding this new offering and upcoming conference calls at [email protected] or on 860
598-5008.
MVP REIT is pleased to announce its latest acquisition, which closed in March 2015.
Garage Type: Multi-Level; Location: Fort Worth, Texas; Purchase Price: $23,500,000; Spaces: 1,013
Gentry Mills Capital is pleased to announce that GMI-Orlando, LP is fully subscribed. The sponsor, Gentry Mills
Capital, raised $4,182,735 through the broker dealer community for the purchase of limited partner interests in GMI—
Orlando, LP.
Phillips Edison Grocery Center REIT II: We are pleased to provide you with information regarding the
upcoming close of the Phillips Edison Grocery Center REIT II, Inc. ("PEGCR II") public non-listed offering. This
offering will close to new investments upon the earlier of: A) Selling $1.6 billion in shares of common stock OR B)
June 30, 2015. Through January 22, 2015, approximately $583.9 million (23.5 million shares) have been sold.
In order to allow for associated processing time needed, the transfer agent for PEGCR II will accept subscriptions
in good order dated on or before June 30, 2015 and received no later than August 30, 2015. Funding for submitted
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subscriptions must also be received on or before August 30, 2015. PEGCR II will promptly return any subscription
it is unable to accept due to reaching the maximum offering size prior to receipt of that subscription.
FS Energy & Power Fund (FSEP) follow-on investor materials are now available. For new business, please use
the follow-on kit and ensure that investors receive a copy of the prospectus. For more information, or to order
additional kits, please contact the sales desk at 877-372-9880.
Recent Products Approved:
Product
Date Approved
FS Energy & Power Follow-on 3/28/15
Contact
John Dickens / 215-298-9853 /
[email protected]
ARC Property Trust
3/12/15
American Realty Capital RCA
II
3/12/15
Julie Pacquette / RC Securities / National Account
Manager / (617) 584-4739
Inland Austin Lakeshore
Multifamily DST
3/10/15
Keith Lampi / [email protected] / 630586-4988
Products Under Review:
Product
Status
RK Properties Azure Creek at Tatum Ranch LLC
With Committee
Behringer Harvard NIP DST IV
With Analysts
BR Ansley DST
With Analysts
Shopoff Land Fund III
With Analysts
KBS
With Analysts
Resource Royalty Income & Growth Fund IV LP
With Analysts
Shopoff Land Fund III
With Analysts
ARC Global Trust II
With Analysts
ARC Healthcare Trust III
With Analysts
The list above shows products recently approved and those under review. For a complete list of products and
programs currently available go to http://aiinsight.com/ and log in.
Equity Updates
Sponsor
Sandlapper Capital
Sandlapper Student Housing
Inland
Inland
Inland
Inland
Inland
Inland
Passco
CSRA
CSRA
CSRA
Dahn
JF Capital
AEI
ExchangeRight
Program
TSWR II
SL Enclave West
Austin Lakeshore Multifamily DST
Colorado Multifamily DST
Carmel Multifamily DST
Retail Portfolio DST
Modesto Retail Center DST
Mountain View Retail DST
Columns at Wakefield
MOB Texas Portfolio III DST
MOB Portfolio II DST
Komar Desert Center DST
Dahn America360 Storage DST
JFC Windsor DST
AEI Net Lease Portfolio II DST
Net-Leased Portfolio 8 DST
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Equity Remaining
$23,000,000
$4,000,000
$14,300,000
$31,900,000
$4,500,000
$4,675,000
$500,000
$300,000
$251,475
$3,642,818
$3,464,445
$7,272,088
$3,832,000
$1,274,600
$11,121,000
$3,000,000
BRINGING IT HOME WITH THE CEO BY TREVOR GORDON
25% of 2015 in the Rear View Mirror…
It’s hard to believe that we have already closed the first quarter of 2015. Where does the time go? Historically, Q1
tends to be a slower period of growth in the individual practices, largely due to the time spent with tax filing season,
but it shouldn’t. The fresh start a new year brings should be an optimal time for prospecting and production. If Q1
is spent doing the reviews and rebalancing (as needed) with clients, each meeting provides a great opportunity to ask
for the referral. As clients are seeing the net gains (or losses) in the assets they have held away from you, there too
are opportunities to capture more assets through consolidation, reduction of overlap and redundancy in a portfolio.
You should also start early discussions for 2015 tax planning.
With this information in mind, how did you (we) shape up in Q1 2015 compared to last year?
Q1 – 2014
Q1 – 2015
$3,118.23
$321,515.98
With the acquisition of Colony Park in Q2 2014, we added a great additional source of revenue and capabilities for our
retail customers. The additional reps and advisors have been a welcome addition to the SANDLAPPER family.
Retail BD Revenue
Q1 – 2014
Q1 – 2015
$825,729.61
$937,005.54
A nice start to the year with a 13.48% increase over Q1 2014. For Q1 2014 the Top Five reps represented 60.15% of that
number and this year it is 70.72%. While we would like to see the overall results spread more widely amongst the reps, we
highlight this number because there is a great significance to the data. Three of the 2014 Top Five to represent the number
above were part of an office that is no longer with us. Not only did the remaining SANDLAPPER reps step up and fill the
void left, you exceeded what was done previously.
Accounts Opened
Q1 – 2014
Q1 – 2015
81
58
The only number to give us a little disappointment is in the 40% reduction in accounts opened. As stated above, the first
quarter of the year provides several naturally imbedded opportunities to prospect new business, and the reduction in accounts
opened shows that we may have missed some opportunities. If you did not open any new accounts in the first quarter, you may
want to re-focus your prospecting efforts on new clients and capturing assets.
2015 is off to a good start on a collective basis. Looking at individual rep by rep results, many of you are falling
behind already. Let us know what we can do to help you get going and improve the profitability of your practice. In
this, as with every issue of the Rep Digest, you will see and hear from all the areas of our business with new ideas,
refreshers as well as solid product vendors that give you an immediate deliverable to help you grow and enhance
your business. It is up to you and you alone to seize on these opportunities as well as your own experiences and your
network to grow your business. This is a dynamic time in the markets and with capital formation…are you
participating?
Trevor
This newsletter is for Broker Dealer/RIA Use Only. This is not an offer to buy or sell securities. Such offers may only be made
to suitable investors by prospectus as required by law. Securities offered through SANDLAPPER Securities, LLC (Member
FINRA/SIPC).
This newsletter has not been approved for public use and MAY NOT be distributed to clients and prospects.
Copyright ©2011 - 2015. All Rights Reserved.
Contact Editor Marlene Arteta with any questions at 312-505-1014 or [email protected]
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